Investors Demand Answers
From Long-Term Capital

By

Mitchell Pacelle and

Anita Raghavan Staff Reporters of The Wall Street Journal

Updated Sept. 25, 1998 12:50 a.m. ET

Since its founding in 1993, Long-Term Capital Management insisted upon an unusual degree of blind trust from its investors and lenders, providing them with only sketchy information on its investments. But now that the hedge fund has narrowly escaped outright collapse, the curtain of secrecy is coming up.

Thursday, some investors reacted with a mix of anger and confusion to the news that the planned $3.5 billion capital infusion by 15...